Operating margins have compressed from a peak of 20.9% in 2023Q3 to 12.6% in 2025Q2, suggesting that rising SG&A expenses are consistently outpacing gross profit growth.
| Sales/Revenue | 14.01B | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 4.97B | 9.24B | 5.03B | 4.51B | 3.03B | 5.75B | 3.63B | 4.99B | 3.01B | 1.32B | 602.03M | -72.46M |
| Gross Margin % | 35.49% | 72.25% | 35.39% | 34.56% | 30.76% | 50.52% | 31.2% | 47.1% | 39.65% | 23.65% | 13.88% | -2.87% |
| Gross Profit Growth % | - | 83.88% | 11.37% | 48.71% | -47.22% | 58.25% | -27.25% | 65.81% | 128.16% | 119.27% | 930.87% | - |
| Operating Expenses | 2.96B | 6.98B | 2.74B | 2.63B | 2.7B | 2.68B | 2.2B | 2.37B | 1.19B | 844.43M | 590.99M | 324.87M |
| OpEx % of Revenue | - | 54.55% | 19.29% | 20.17% | 27.37% | 23.54% | 18.89% | 22.32% | 15.66% | 15.13% | 13.62% | 12.87% |
| Selling, General & Admin | 2.34B | 2.28B | 2.16B | 2.12B | 2.12B | 2.13B | 1.73B | 1.95B | 869.84M | 609.14M | 463.68M | 284.43M |
| SG&A % of Revenue | - | 17.83% | 15.22% | 16.24% | 21.46% | 18.71% | 14.82% | 18.4% | 11.45% | 10.91% | 10.69% | 11.26% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 2.02B | 2.26B | 2.29B | 1.88B | 334.45M | 3.07B | 1.43B | 2.63B | 1.82B | 475.66M | 11.04M | -397.32M |
| Operating Margin % | 14.39% | 17.7% | 16.1% | 14.39% | 3.39% | 26.98% | 12.31% | 24.78% | 23.98% | 8.52% | 0.25% | -15.74% |
| Operating Income Growth % | - | -0.98% | 21.66% | 461.85% | -89.11% | 114.25% | -45.45% | 44.2% | 283.03% | 4209.3% | 102.78% | - |
| EBITDA | 1.81B | 2.37B | 2.43B | 2.02B | 482.59M | 3.22B | 1.54B | 2.72B | 1.85B | 494.52M | 15.62M | -395.94M |
| EBITDA Margin % | 12.9% | 18.5% | 17.14% | 15.5% | 4.89% | 28.26% | 13.23% | 25.61% | 24.38% | 8.86% | 0.36% | -15.68% |
| EBITDA Growth % | 28.27% | -2.79% | 20.26% | 319.46% | -84.99% | 108.76% | -43.27% | 46.58% | 274.57% | 3065.12% | 103.95% | - |
| D&A (Non-Cash Add-back) | 0 | 102.56M | 148.19M | 145.14M | 148.14M | 145.3M | 107.29M | 87.84M | 30.4M | 18.86M | 4.59M | 1.39M |
| EBIT | 1.81B | 2.26B | 1.36B | 1.38B | 1.08B | 2.83B | 763.15M | 2.75B | 2.13B | 475.66M | 11.04M | -397.32M |
| Net Interest Income | -11.79M | 1.83B | -9.01M | -50.48M | -55.64M | -63.13M | -77.54M | -39.22M | -23.06M | -75.52M | -48.34M | -1.93M |
| Interest Income | 0 | 2.07B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 11.79M | 244.83M | 9.01M | 50.48M | 55.64M | 63.13M | 77.54M | 39.22M | 23.06M | 75.52M | 48.34M | 1.93M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 1.97B | 2.02B | 1.35B | 1.33B | 1.03B | 2.77B | 685.61M | 2.71B | 2.11B | 474.58M | -59.68M | -399.13M |
| Pretax Margin % | 14.09% | 15.78% | 9.53% | 10.16% | 10.43% | 24.34% | 5.89% | 25.52% | 27.77% | 8.5% | -1.38% | -15.81% |
| Income Tax | 360.87M | 387.67M | 253.28M | 260.84M | 202.64M | 435.42M | 90.63M | 411.96M | 132.22M | 234.23M | 58.26M | -88.93M |
| Effective Tax Rate % | 18.27% | 19.2% | 18.71% | 19.66% | 19.7% | 15.72% | 13.22% | 15.22% | 6.27% | 49.35% | -97.62% | 22.28% |
| Net Income | 1.61B | 1.63B | 1.1B | 1.07B | 819.75M | 2.33B | 594.98M | 2.29B | 1.98B | 240.35M | -117.94M | -310.19M |
| Net Margin % | 11.52% | 12.75% | 7.75% | 8.16% | 8.31% | 20.51% | 5.11% | 21.64% | 26.03% | 4.31% | -2.72% | -12.29% |
| Net Income Growth % | 99.05% | 48.25% | 3.24% | 30.03% | -64.88% | 292.27% | -74.07% | 16.04% | 722.67% | 303.79% | 61.98% | - |
| Net Income (Continuing) | 1.61B | 1.63B | 1.1B | 1.07B | 825.93M | 2.33B | 594.98M | 2.29B | 1.98B | 240.35M | -117.94M | -310.19M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 40.19M | 40M | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 9.01 | 9.16 | 6.50 | 6.34 | 4.42 | 11.46 | 3.12 | 12.22 | 10.90 | 1.40 | -0.71 | -5.60 |
| EPS Growth % | 89.26% | 40.92% | 2.52% | 43.44% | -61.43% | 267.31% | -74.47% | 12.11% | 678.57% | 297.18% | 87.32% | - |
| EPS (Basic) | - | 9.64 | 6.64 | 6.48 | 4.72 | 12.66 | 3.26 | 12.90 | 10.90 | 1.46 | -0.78 | -5.60 |
| Diluted Shares Outstanding | 179.24M | 177.54M | 169.63M | 179.91M | 196.38M | 207.5M | 205.61M | 187.92M | 181.38M | 172.29M | 165.39M | 55.32M |
| Basic Shares Outstanding | 170.24M | 169.47M | 165.7M | 168.26M | 174.02M | 184.23M | 205.61M | 186.75M | 181.38M | 164.72M | 151.86M | 55.32M |
| Dividend Payout Ratio | - | 23.49% | 14.94% | 12.72% | - | - | - | - | - | - | - | - |
Regulatory APR Cap Sensitivity
As reported in recent financial statements, Lexin's gross margin fluctuated between 33.0% and 39.3% over the last eight quarters, reflecting the inherent instability of a business model balancing low-margin retail e-commerce with high-margin credit facilitation services in a competitive Chinese consumer finance market.
The variability in gross margins suggests that the company's reliance on the Fenqile platform as a customer acquisition tool creates significant noise in the cost structure. Investors should monitor whether the shift toward capital-light facilitation can stabilize these margins by reducing the impact of credit-related provisions on the top line.
Based on the provided income statement data, operating margins have compressed from a peak of 20.9% in 2023Q3 to 12.6% by 2025Q2, indicating that SG&A expenses are scaling at a rate that consistently outpaces the growth of gross profit across the firm's core operations.
This trend suggests that the company is struggling to achieve meaningful operating leverage, likely due to rising customer acquisition costs or the need for increased investment in risk management infrastructure. The inability to expand operating margins despite revenue fluctuations warrants further investigation into the efficiency of their marketing spend.
According to quarterly filings, Lexin's net income has exhibited extreme volatility, ranging from a low of $12.1 million in 2023Q4 to $511.4 million in 2025Q2, a disparity largely driven by non-operating items and the accounting treatment of guarantee liabilities under ASC 460.
The significant gap between operating income and net income suggests that investors should be cautious when relying on headline EPS figures. The persistent stock-based compensation, averaging over $20 million per quarter, further dilutes the quality of earnings and warrants a closer look at the true cash-generative capacity of the business.
As noted in regulatory disclosures, the company's reliance on facilitation fees faces structural risks from potential APR caps, which may force a pivot toward lower-yield products and permanently impair the profitability of the credit engine that currently drives the majority of the firm's bottom-line results.
Short-sellers may focus on the potential for margin compression if the company is forced to lower its take rate to remain compliant with evolving Chinese financial regulations. If the proprietary credit model fails to maintain its edge in a tightening regulatory environment, the current valuation may prove difficult to justify.
Quick answers to the most common questions about buying LX stock.
LexinFintech Holdings Ltd. (LX) is profitable, generating $1.63B in net income for the fiscal year ending 2025 with a net profit margin of 12.8%.
LexinFintech Holdings Ltd. (LX) reported an operating income of $2.26B, resulting in an operating profit margin of 17.7%. This margin reflects the operational efficiency of the business before interest and taxes.
LexinFintech Holdings Ltd. (LX) generated $9.24B in gross profit for the year, representing a gross profit margin of 72.3%. This demonstrates the company's core pricing power and production efficiency.